What the Bank of England decided — and why.
On Thursday 5 November 2026, the Bank of England’s Monetary Policy Committee (MPC) raised the UK base rate from 3.75% to 4.00% — the first interest rate increase since August 2023, and the first change of any kind since the rate was cut in December 2025. The decision directly affects tracker mortgage rates and standard variable rates (SVR), and the pricing of new fixed-rate mortgage deals across the UK.
MPC vote — 5 November 2026
Voted to raise to 4.00% (8)
- Andrew Bailey (Governor)
- Sarah Breeden
- Swati Dhingra
- Megan Greene
- Clare Lombardelli
- Huw Pill (Chief Economist)
- Dave Ramsden
- Alan Taylor
Voted to raise to 4.25% (1)
- Catherine Mann
Why did the MPC raise rates?
- Inflation is rising again. UK CPI inflation climbed to 3.5% in September, well above the 2% target, and the Bank now expects it to reach around 5% by the middle of next year.
- More price pressure in the pipeline. The Committee judged that the inflationary pressure building in the economy was now enough to justify a rise.
- The economy has been stronger than expected. Activity data in recent months generally beat expectations, adding to the case for slightly tighter policy.
- No one voted to hold. Governor Andrew Bailey said “the case is clear for a 25-basis point rise now.” The only disagreement was over the size of the move: Catherine Mann argued for a larger half-point rise.
What it signals for your mortgage
The Bank says policy is not on a pre-set path and it will assess the evidence at each meeting. But several members indicated that a further rise may be needed, while Alan Taylor described today’s move as an insurance hike and said the next change could go in either direction. For mortgage holders, the message is that cheap borrowing is not returning soon.
Rate history and swap rates.
The UK base rate peaked at 5.25% in August 2023 — the highest level since 2008. Six Bank of England rate cuts followed between August 2024 and December 2025, bringing the rate to 3.75%. Today’s rise reverses the last of those cuts: the base rate is now back where it was after the August 2025 cut.
Bank Rate per the Bank of England; 2-year SONIA swap rate shown as indicative snapshots. Green points = cuts; red point = today’s rise.
| Date | Decision | Rate | Vote | Notes |
|---|---|---|---|---|
| Aug 2023 | ▲ Raise | 5.25% | 6–3 | Cycle peak |
| Aug 2024 | ▼ Cut | 5.00% | 5–4 | First cut since 2020 |
| Nov 2024 | ▼ Cut | 4.75% | 8–1 | |
| Feb 2025 | ▼ Cut | 4.50% | 7–2 | |
| May 2025 | ▼ Cut | 4.25% | 5–4 | |
| Aug 2025 | ▼ Cut | 4.00% | 5–4 | Decided on a second round of voting |
| Dec 2025 | ▼ Cut | 3.75% | 5–4 | Last cut of the cycle |
| Feb 2026 | — Hold | 3.75% | 5–4 | Four members wanted a cut |
| Mar 2026 | — Hold | 3.75% | 9–0 | Unanimous |
| Apr 2026 | — Hold | 3.75% | 8–1 | First vote for a rise |
| Jun 2026 | — Hold | 3.75% | 7–2 | Two votes for a rise |
| Jul 2026 | — Hold | 3.75% | 6–3 | Three votes for a rise |
| Sep 2026 | — Hold | 3.75% | 6–3 | Three votes for a rise |
| 5 Nov 2026 | ▲ Raise | 4.00% | 8–1 | First rise since Aug 2023 |
Why fixed mortgage rates moved before the Bank did
Fixed-rate mortgages (2-year and 5-year fixes) track swap rates, not the base rate directly. When markets began pricing in a UK rate rise during 2026, swap rates jumped and lenders repriced their fixed deals immediately. Much of today’s decision was already in the mortgage market.
Key data to watch before 17 December.
The next Bank of England decision is on 17 December 2026. Between now and then, these UK data releases will shape whether interest rates rise again — and whether fixed mortgage rates, tracker rates and SVRs move higher still.
| Date | Release | Why it matters |
|---|---|---|
| 12 Nov 2026 | GDP — Q3 2026 | If growth is weak, it weakens the case for a second rise, even with inflation elevated. |
| 17 Nov 2026 | Labour market | Wage growth feeds directly into services inflation, a central concern for the MPC. |
| 18 Nov 2026 | CPI — October | The first reading to include October’s energy price cap rise. A strong print could push fixed rates higher within days. |
| December 2026 | CPI — November | The last inflation reading expected before the MPC meets. The direction of travel is key. |
| December 2026 | Retail sales | A consumer spending slowdown would suggest the rise is biting, reducing pressure to act again so soon. |
| 17 Dec 2026 | MPC decision | The next base rate decision. The data above will largely determine the outcome. |
The single number UK mortgage borrowers should watch
The 18 November CPI release is the key data point before the December decision. A strong reading could see lenders reprice fixed-rate deals upward again within days. Whether you are thinking about remortgaging, buying your first home, or switching from a tracker to a fixed deal, that is the date to watch.
Impact on your mortgage today.
What does today’s base rate rise mean in pounds and pence? Here is how each UK mortgage type is affected.
| Mortgage type | What happens | Monthly impact* | Action |
|---|---|---|---|
| Tracker mortgage | Rises in line with base rate: typically ~4.0–4.5% to ~4.25–4.75%. | +~£28/mo | Rises today |
| Standard Variable Rate | Set by your lender, which typically follows within weeks: ~7.0–7.5% to ~7.25–7.75%. | +~£32/mo | Rises soon |
| Existing fixed deal | No change until your deal ends. | None for now | Check your end date |
| New 2-year or 5-year fix | Largely priced in already, with moderate further pressure. Averages were around 6% at the end of October. | Depends on deal | Review now |
| New 10-year fix | Smaller impact. | Depends on deal | Monitor |
* Based on a £200,000 repayment mortgage over 25 years and a 0.25 percentage point rise. Illustrative only.
On a tracker or SVR mortgage?
Your tracker rate rises automatically; SVR lenders typically follow within weeks. A whole-of-market broker can explain your remortgage options, and switching from a tracker or SVR to a fixed rate may save you money even at current rates.
Fixed deal ending soon — should I remortgage now?
Starting your remortgage six months before your deal ends is not too early. UK mortgage rates could move again before the 17 December decision. Secure a deal early and you can usually switch if rates fall.
First-time buyer?
Affordability pressure is real but lenders are still lending. A whole-of-market, FCA-regulated mortgage broker can find the best first-time buyer mortgage rates your income supports. Use our free mortgage finder →
Already on a good fixed rate?
Today’s rise doesn’t change your payment. If your deal has more than 12 months to run, keep an eye on the MPC decisions and CPI releases so you know when to look at your next remortgage.
Current BOE base rate — 4.00% · Raised 5 November 2026
- Last change
- ▲ Rise (+0.25%)
- Previous change
- ▼ Cut, Dec 2025
- MPC vote
- 8–1
- UK inflation (Sept)
- 3.5% CPI
- Next meeting
- 17 Dec 2026
- Peak (Aug 2023)
- 5.25%
Important information
This article is for informational purposes only and does not constitute financial advice. Mortgage rate figures are indicative as at 5 November 2026 and change daily. MPC vote details and macroeconomic data are sourced from publicly available Bank of England statements and the ONS. Monthly cost estimates are illustrative only. Always speak to a qualified, FCA-regulated mortgage adviser before making any financial decision. Mortgage Locator is an introducer service and does not itself provide regulated mortgage advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
Published 5 November 2026 by the Mortgage Locator team. Sources: Bank of England Monetary Policy Summary and Minutes, Bank Rate history and MPC dates; ONS release calendar.